2023-12-05 sec-litreleases litigation_release 64 KB 2,289 chars

SEC v. Marc Wexler, No. LR-25905, Eastern District of New York (Dec. 5, 2023) — Press Release

raw: Marc E. Wexler

Marc E. Wexler, No. 1:14-cv-4346 (E.D.N.Y. Dec. 5, 2023)

Caption: Securities and Exchange Commission v. DiScala et al., Civil Action No. 1:14-cv-4346

summary

The SEC obtained a final judgment against Marc Wexler for his role in a scheme to manipulate CodeSmart Holdings, Inc. stock prices, resulting in a permanent injunction and disgorgement.

paragraph

Marc Wexler was charged with violating multiple provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 for manipulating CodeSmart Holdings, Inc. stock. The SEC alleged Wexler profited over $2 million by dumping shares while coordinating with brokers to purchase stock in client accounts. The court ordered Wexler to disgorge $2,218,599 in ill-gotten gains and interest, which was satisfied via a parallel criminal restitution order.

narrative

The U.S. Securities and Exchange Commission obtained a final judgment against Marc Wexler for his involvement in a scheme to manipulate the price of CodeSmart Holdings, Inc. securities. Starting in 2013, Wexler allegedly engaged in a promotional campaign to artificially inflate stock prices and flooded the market with shares. He was accused of personally dumping his shares while working with brokers who were simultaneously purchasing stock in client accounts, allegedly profiting over $2 million. Wexler faced charges for violating several sections of the Securities Act of 1933 and the Securities Exchange Act of 1934. The court's final judgment includes a permanent injunction against future violations, a penny stock bar, and an officer-and-director bar. Additionally, Wexler agreed to disgorge $2,218,599 in ill-gotten gains and interest, a payment deemed satisfied by a restitution order from a parallel criminal proceeding.

Enriched metadata

Scheme: market-manipulation (95%)
Court: Eastern District of New York
Case No.: 1:14-cv-4346
Disgorgement: $2,218,599
Entity: Marc E. Wexler

Classified market-manipulation(confidence 95%). EDGAR detection: forms SC 13D/G/13F· recall 53% / precision 9%. detection rule →

Extracted insights

Dollar amounts 2

$2.22M $2,218,599 $1M–$10M
$2.00M $2 million $1M–$10M

Entities 3

person marc wexler
agency Securities and Exchange Commission
court u.s. district court for the eastern district of new york

Triples 14

Securities And Exchange Commission Obtains Final Judgment Against CodeSmart Defendant For Role In Alleged Offering Fraud
U.S. District Court For The Eastern District Of New York Entered Final Judgment Against Marc Wexler
Securities And Exchange Commission Alleged Wexler And Others Sought To Flood The Market With CodeSmart Shares
Securities And Exchange Commission Alleged Wexler Personally Dumped His CodeSmart Shares While Working With Two Brokers Purchasing CodeSmart Stock For Their Clients
Marc Wexler Profited Over $2 Million
Securities And Exchange Commission Charged Wexler With Violating Sections 5(a), 5(c) And 17(a) Of The Securities Act Of 1933, Sections 9(a) And 10(b) Of The Securities Exchange Act Of 1934 And Rule 10b-5
U.S. District Court For The Eastern District Of New York Entered Partial Judgment Against Marc Wexler By Consent On December 22, 2022
Marc Wexler Agreed To Be Permanently Enjoined From Violations Of The Charged Provisions
Marc Wexler Agreed To a Penny Stock Bar And Officer-And-Director Bar
U.S. District Court For The Eastern District Of New York Entered Final Judgment Against Marc Wexler By Consent On December 4, 2023
Marc Wexler Agreed To Disgorge $2,218,599 In Ill-Gotten Gains And Prejudgment Interest
Securities And Exchange Commission Litigation Handled By Todd Brody And Lindsay Moilanen Of The New York Regional Office
Securities And Exchange Commission Litigation Supervised By Sheldon L. Pollock And Joseph Sansone
Securities And Exchange Commission Appreciates Assistance Of U.S. Attorney’s Office For The Eastern District Of New York And FBI

View original SEC litigation releasesec.gov

Extracted body text (2,289c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25905 / December 5, 2023 Securities and Exchange Commission v. DiScala et al., Civil Action No. 1:14-cv-4346 (E.D.N.Y. filed July 17, 2014; amended Jan. 19, 2016) SEC Obtains Final Judgment Against CodeSmart Defendant for Role in Alleged Offering Fraud On December 4, 2023, the U.S. District Court for the Eastern District of New York entered a final judgment against Marc Wexler, enjoining him from violating certain provisions of the federal securities laws. According to the SEC’s complaint, starting in 2013, Wexler was involved in a scheme to manipulate the price of the securities of CodeSmart Holdings, Inc. (“CodeSmart”). The SEC alleged that Wexler and others sought to flood the market with CodeSmart shares and engaged in a promotional campaign to artificially inflate the price of the stock. The SEC further alleged that Wexler personally dumped his CodeSmart shares on the market while working with two brokers who were at the same time purchasing CodeSmart stock in the accounts of their clients. In connection with this scheme, Wexler allegedly profited over $2 million. The SEC’s complaint charged Wexler with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. On December 22, 2022, the Court entered a partial judgment against Wexler by consent in which he agreed to be permanently enjoined from violations of the charged provisions and agreed to a penny stock bar and officer-and-director bar. On December 4, 2023, the Court entered a final judgment against Wexler by consent in which he agreed to be permanently enjoined from violations of the charged provisions. He agreed to disgorge $2,218,599 in ill-gotten gains and prejudgment interest thereon, the payment of which was deemed satisfied by the restitution order in the parallel criminal proceeding, United States v. DiScala, et al., 14 Cr. 399 (E.D.N.Y.). The SEC’s litigation is being handled by Todd Brody and Lindsay Moilanen of the New York Regional Office and is being supervised by Sheldon L. Pollock and Joseph Sansone. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York and the FBI.

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